You are faced with a linear programming objective function of Max P

Question

You are faced with a linear programming objective function of:

Max P = $20X + $30Y

and constraints of:

3X + 4Y = 24 (Constraint A)

5X - Y = 18 (Constraint B)

You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is true?

A) You can change quantities of X and Y at no cost for Constraint B.

B) For every additional unit of the objective function you create, you lose 0 units of B.

C) For every additional unit of the objective function you create, the price of A rises by $7.50.

D) The most you would want to pay for an additional unit of A would be $7.50.

Answer

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